Novartis Net Profit Boosted by Gain From Sandoz Spinoff — Update

By Adria Calatayud

Novartis reported a big jump in fourth-quarter net profit after it booked a gain from the spinoff of its generics-drugs business Sandoz.

Net profit for the fourth quarter was $8.48 billion compared with $1.47 billion in the same period a year before, the Swiss pharmaceutical major said Wednesday. This included a noncash gain of $5.9 billion from the distribution of Sandoz shares to Novartis shareholders that was completed in October, it said.

Net profit from continuing operations doubled to $2.64 billion on sales that rose 8% to $11.42 billion, Novartis said. Strong growth in sales of the company's Entresto heart drug and Cosentyx psoriasis treatment, with both topping $1 billion in quarterly revenue, helped the top line.

Core operating profit climbed 4.8% to $3.82 billion, it said.

Analysts polled by Visible Alpha expected Novartis to report fourth-quarter net profit of $3.75 billion on sales of $11.51 billion.

For 2024, the company said it expects growth in net sales of a mid single digit percentage and in core operating profit of high single digit, both at constant currency.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

January 31, 2024 01:40 ET (06:40 GMT)

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